Capitec hits over 1 million active mobile users

Banking group Capitec says its mobile service, Capitec Connect, now has over 1 million active users and has launched new bundles.

The bank was previously reticent to share data on its active user base. It previously reported having 1.3 million Capitec Connect SIMs in distribution, but never revealed the active user base.

In its latest annual results, it reported generating R35 million in net transaction and commission income for the period 1 March 2023 to 29 February 2024.

This represents a massive R42 million year-on-year increase, with Capitec Connect recording a R7 million loss the year before during its first five months of operation.

Speaking at the group’s results presentation in April, Capitec CEO Gerrie Fourie said that the mobile network plan is a big part of the bank’s strategy, particularly in helping it understand clients and their needs.

He said he was excited about Capitec Connect and that “quite a lot” of new products for the service would be coming in the year ahead.

Capitec launched its mobile service running on Cell C’s MVNO platform—with network infrastructure operated by MTN—back in September 2022.

It launched to disrupt the mobile space in South Africa by offering cheaper data and voice bundles than the dominant networks in the country.

It also differed from the networks by offering data that doesn’t expire.

Building on the group’s simplicity in banking, the mainline mobile prepaid services include:

• Data at R4.50 per 100MB or R45 per 1GB
• Minutes at 90c per minute
• SMS at 25c per SMS

A year after launch (September 2023), the group introduced 10GB bundles. While the price was significantly lower than competitors (R199 vs R469) it did come with an expiry attached – valid for 30 days.

For non-expiring data of the same 10GB amount, it would cost R450, which is still cheaper than most competitors.

However, Capitec maintains that its pricing is still challenging the “excessive” cost of data and other mobile services in the country, offering “80% more value” than other networks.

Dr Dalene Steyn, Head of Capitec Connect, said Capitec has now launched flexible prepaid bundles, which offer even more value, but come with validity periods attached.

These include:

• 100MB for R3, valid for 1 day
• 1GB for R29, valid for 7 days
• 10GB for R199, valid for 30 days

Read: Huge jump in profit for Capitec – which counts over a third of South Africans as customers